How did we get here? Blame soaring prices for auto insurance, maintenance and car repairs, vehicle prices and parts, and gasoline. They\u2019ve all risen at least three times faster<\/em> than tuition at state universities over the past five years, with the exception of new trucks, which have risen nearly<\/em> three times faster. The recent jump in interest rates has also played a role.<\/p>\n\n\n\n Car ownership costs surpassing in-state college tuition serves as another marker in a growing crisis of affordability for American drivers. Nearly every ownership cost has soared in recent years, rising at a much faster rate than tuition at public universities. The COVID-19 pandemic pushed vehicle prices sharply higher, while maintenance and repair costs and auto insurance have been rising for longer.<\/p>\n\n\n\n Most Americans (71%) say auto insurance is becoming unaffordable<\/a> to the average family, and insurance costs inflict more financial stress on teen drivers and their parents than they do on the average driver. So it\u2019s little surprise that a recent survey by Jerry found that parents of teen drivers are more stressed out and more likely to shop around and switch insurance providers for a lower rate.<\/p>\n\n\n\n Seventy percent of parents of a teen driver said they shopped around for insurance<\/a> in the previous year, versus 43% of respondents who weren\u2019t parents of teens. One in four (24%) parents of a teen said they switched insurers to get a lower price<\/a>, compared to 14% of their counterparts. Nearly one in five (18%) of parents of teen drivers said auto insurance caused them a high or extreme level of financial stress in the previous year, compared to 12% of all drivers.<\/p>\n\n\n\n It was once an article of faith that an industrious American teenager could buy a used vehicle (and even pay for college) by working a menial job, whether during the summers or part-time during school years. Now it\u2019s a different story.<\/p>\n\n\n\n The average hourly wage for fast food workers, lifeguards, retail salespeople, and amusement and recreation attendants is now $14.08. At that rate, someone would have to work 49 hours a week over a 15-week summer, or 14 hours a week for 52 weeks a year, to cover the cost of owning and driving a 2018 Toyota, assuming they financed the vehicle<\/span>. That would leave little time for a life, much less money to pay for college. Which begs the question, will some teens be left to decide between transportation and higher education?<\/p>\n\n\n\n![\"The](\"https:\/\/getjerry.com\/wp-content\/uploads\/2024\/12\/driving_univ_price_comparison@2x-1024x765.png\")
<\/figure>\n\n\n\nKey Insights<\/h2>\n\n\n\n
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A Premium for Insurance<\/h2>\n\n\n\n
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<\/figure>\n\n\n\nPay as You Go?<\/h2>\n\n\n\n